A Systematic Withdrawal Plan (SWP) lets you take a fixed amount from your mutual fund every month while the rest stays invested. The question that matters is simple: how long will the money last? This calculator answers it for your own numbers.
[Use the SWP Calculator above ↑] — enter your corpus, monthly withdrawal, expected return and time period. You can also raise the withdrawal every year to keep up with inflation.
With an SWP, you invest a lump sum in a mutual fund and instruct the fund house to redeem a fixed amount on a date you choose each month. Each withdrawal sells some units, so your balance falls by that amount, while the units that remain keep earning. It is the reverse of a SIP.
It runs your plan month by month. Each month it takes out your withdrawal at the start, then adds one-twelfth of your annual return on what is left. If you set a yearly increase, the withdrawal rises once every 12 months. If the balance cannot cover a withdrawal, the calculator tells you the month the corpus runs out.
All examples use a ₹50 lakh corpus over 20 years at an assumed 10% annual return. They show why the withdrawal amount and the yearly increase matter more than the starting corpus.
| Scenario | Total withdrawn | Balance after 20 years |
|---|---|---|
| ₹30,000 a month, no increase | ₹72 lakh | about ₹1.37 crore |
| ₹30,000 a month, raised 5% every year | about ₹1.19 crore | about ₹41.6 lakh |
| ₹60,000 a month at 8% return | about ₹72.5 lakh | runs out after 10 years 1 month |
Notice the second row: a withdrawal that looks safe when it stays flat can use up most of the corpus once you raise it every year to match inflation. That is the version that reflects real life, so test it before you commit.
The calculator shows your first-year withdrawal rate, which is your yearly withdrawals divided by the corpus. ₹30,000 a month on ₹50 lakh is 7.2%. It also shows the monthly amount at which your corpus would stay unchanged at your assumed return. On ₹50 lakh at 10%, that is about ₹41,300 a month. Withdraw less than this and the corpus grows; withdraw more and it shrinks.
A fixed 10% every year is a convenient assumption, not a promise. Equity funds move up and down, and a market fall in the first few years, while you are also withdrawing, can drain a corpus much faster than a smooth return suggests. For a plan you will depend on, try a lower return, such as 7% to 8%, and treat any withdrawal rate above 4% to 5% a year with caution.
Each SWP payment is treated as a sale of units, and tax applies only to the gain portion of the units sold, not the whole amount. The calculator shows figures before tax. The current capital gains rules are:
| Fund type | Units held under 12 months | Units held over 12 months |
|---|---|---|
| Equity funds (over 65% equity) | 20% on gains | 12.5% on gains above ₹1.25 lakh a year |
| Debt funds bought on or after 1 April 2023 | Taxed at your slab rate | Taxed at your slab rate |
For many retirees using equity funds, the ₹1.25 lakh yearly exemption means part of the gains from an SWP may be tax-free. Check your own position with a tax adviser, because your other gains in the year also count towards the limit.
An SWP is flexible and can be tax-efficient, but the amount you receive is not guaranteed, because it depends on the fund’s value. Government schemes pay a fixed interest. If you want certainty, compare it with the Post Office Monthly Income Scheme, or, if you are 60 or older, the Senior Citizen Savings Scheme. Many people split their money, keeping a fixed-income base for essentials and an SWP for the rest. Our guide to 12 passive income ideas in India covers more options.
What is a good SWP withdrawal amount?
There is no single right figure. As a starting point, many planners suggest keeping the first-year withdrawal at around 4% to 5% of the corpus if you need the money to last decades. A higher rate shortens how long it lasts.
Is SWP better than a monthly dividend option?
An SWP gives you a fixed amount on a fixed date, and you choose how much. Dividends depend on the fund’s decision, are not guaranteed and are taxed at your slab rate. For regular income, an SWP is usually more predictable.
Can I stop or change my SWP?
Yes. You can pause, stop or change the amount with your fund house or platform, though changes may take a billing cycle to apply. Check for exit load on units sold early.
Which fund type suits an SWP?
It depends on your time horizon and how much fluctuation you can tolerate. Equity funds can grow the corpus over long periods but fall in bad years. Debt and hybrid funds are steadier but may earn less. This is not advice; match the fund to how long you need the money.
Does this calculator include tax and exit load?
No. It shows pre-tax figures with a fixed return, so your actual results will differ.
Sources: capital gains rates as per current Income Tax rules for FY 2026-27. Verified October 2026. Tax rules and fund terms can change, so confirm before you invest or withdraw.
See also our home loan prepayment calculator and RD calculator.
